The listed firm paid 99% its invoices within 60 days
Only three of the country’s top 20 housebuilders which have spelled out how quickly they pay suppliers managed to beat the government’s target of paying 95% of invoices within 60 days.
Barratt paid 99% of its invoices within 60 days, improving by two percentage points, while Bellway, which reports its year-end at the end of February, paid 97% of its invoices within the 60-day threshold.
Redrow paid 96% of its invoices within the period.
Companies had until yesterday to file details of how long they took to pay invoices as part of the government’s Prompt Payment Code, set up in 2016 to encourage firms to pay their suppliers on time and within the contracted terms.
Firms must file invoice payment reports every six months, according to the government. Those firms paying fewer than 95% of invoices within 60 days run the risk of being kicked off the government’s list of contractors who it will appoint to public sector work.
Among the top 20 housebuilders — ranked by Housing Today’s sister title Building — to report, six showed an improvement in the 60-day payment table, seven firms’ record worsened and four, Bloor Homes, Miller Homes, Persimmon and Taylor Wimpey, remained the same.
The most improved firms among the housebuilders who had filed details were Kier Living, Miller Homes and Morgan Sindall, who paid their suppliers on average eight days quicker than the previous reporting period.
Among the worst performers for average payment times were Telford Homes and Countryside Properties, who took seven and six days longer respectively.
Taylor Wimpey now takes an average of 46 days to pay its suppliers — the longest period among the top 20 housebuilders who have reported.
While a number of firms filed at the end of July, other firms’ reporting calendars meant they were required to report payment times earlier in the year.
| Housebuilder | Average days taken to pay invoices | % of invoices paid within 60 days | Average days increase/decrease on previous reporting period | Building’s top 20 housebuilders 2019 rank |
|---|---|---|---|---|
| Barratt Developments | 22 | 99% | -2 | 1 |
| Bellway Homes | 25 | 97% | 2 | 4 |
| Redrow Homes | 24 | 96% | -4 | 6 |
| McCarthy & Stone1 | 28 | 93% | 1 | 14 |
| Bovis Homes | 37 | 92% | -1 | 9 |
| Persimmon | 36 | 91% | -2 | 3 |
| Berkeley Homes | 30 | 91% | 2 | 5 |
| Bloor Homes | 38 | 91% | 1 | 11 |
| Miller Homes | 26 | 90% | -8 | 13 |
| Crest Nicholson | 39 | 89% | -2 | 8 |
| Avant Homes3 | 33 | 89% | 1 | 17 |
| Telford Homes | 44 | 88% | 7 | 19 |
| Taylor Wimpey | 46 | 85% | 0 | 2 |
| Morgan Sindall | 36 | 85% | -8 | 16 |
| Countryside Properties | 42 | 81% | 6 | 10 |
| Galliford Try Partnerships | 44 | 75% | 1 | 7 |
| Kier Living | 44 | 73% | -8 | 18 |
| Cala Homes | Doesn’t report | 12 | ||
| Keepmoat Homes | Doesn’t report | 15 | ||
| Hill2 | Has not reported yet | 20 |
1 McCarthy & Stone Retirement Lifestyles
2 Hill was due to report by 31 July 2019.
3 Avant Homes did not report for the six months from 1 May 2018 to 31 October 2018. UPDATE: Avant Homes published its payment data for the previous period on 6 August 2019 (average days: 32)
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